- Nio will launch two new models in the second quarter of 2026 and one new model in the third quarter.
- Onvo will launch a new vehicle platform at the appropriate time for models priced below RMB 200,000.
Nio Inc (NYSE: NIO) today released its third-quarter earnings results and subsequently held an analyst conference call.
Below are key highlights from the call, with the most recent updates placed at the top.
In the long term, Onvo should offer a diverse range of products priced between RMB 100,000 and RMB 300,000 to serve a broader user base.
The high-spec version of the Onvo L90 is priced near RMB 300,000, with the L80 set to expand the product lineup next year. The company is developing a vehicle platform priced below RMB 200,000 for Onvo, which will be launched at the appropriate time.
The market segment priced between RMB 100,000 and RMB 300,000 holds an annual sales potential of 15 million units in China — the largest market segment. Nio Inc has every reason to introduce more products in this segment.
Nio has established sales partnerships in over a dozen countries and regions. Firefly will leverage these partnerships to enter markets across Europe, Asia, the Middle East, the Americas, and South America.
Following Firefly, some Onvo models will also enter the global market.
For the Nio brand, given the high price point of its models, expanding in overseas markets requires patience.
ES8 aims to deliver 40,000 units this year, with the majority of deliveries expected in the fourth quarter.
Nio aims to sell its own chips and certain chip R&D capabilities through partners.
Nio maintains its own sales channels, and chip sales partnerships are non-exclusive.
These chip partners possess mature experience and customer resources in the field, with their own chips complementing Nio’s needs.
The gross margin for the Nio ET5, ET5 Touring, and Onvo L90 models ranged between 15 percent and 20 percent in the third quarter.
Nio is working with partners to promote the opening of its chips to the entire EV industry and to more scenarios, including robotics.
Nio aims to achieve a gross margin of around 20 percent in 2026, and the company is confident in this target given the increasing contribution from large vehicle sales.
Nio will have five large vehicles next year from both its Nio and Onvo brands. The company is confident in its sales growth for next year.
Nio aims to achieve full-year profitability on a non-GAAP basis in 2026.
Nio’s quarterly R&D expenses will remain at about RMB 2 billion, with no plans for further reductions. The company will continue to optimize R&D efficiency.
The tapering of stimulus policies may have a relatively minor impact on Nio, as 80-90 percent of its customers purchase vehicles under the BaaS (Battery as a Service) pland, where battery costs are not subject to taxation.
China’s EV industry now relies far less on policy support than before.
Nio still has the chance to achieve monthly deliveries of 50,000 units in a given month during the first half of next year.
Nio will launch two new models in the second quarter of 2026 and one new model in the third quarter.
Nio’s operational efficiency improved further in the third quarter across sales, general and administrative expenses, and R&D costs. With no major marketing campaigns planned for the fourth quarter, expense control will remain within plan.
Nio remains confident in achieving quarterly breakeven in the fourth quarter. Orders for high-margin models, such as the all-new ES8, remain strong.
Onvo’s sales began to be impacted by the tapering of stimulus policies in November, but the effect on overall gross profit remained within expectations.
Nio’s vehicle margin is expected to reach about 18 percent in the fourth quarter, with the ES8 projected to exceed 20 percent. ES8 will see a significant increase in deliveries during the fourth quarter.
As of now, Nio has opened 172 Nio Houses and 395 Nio Spaces. Onvo’s store count has reached 422 locations.
Regarding its service network, the company has established 405 service centers and 70 delivery centers.
Firefly continues to lead the high-end electric compact car market in sales.
Meanwhile, the launch of special edition Firefly models has further attracted users seeking quality and personalized expression.
Firefly is entering overseas markets, expanding into more countries and regions across Europe and Asia.
In the third quarter, the company achieved positive operating cash flow and free cash flow.
Nio expects fourth-quarter deliveries to reach 120,000 to 125,000 units, marking a year-on-year increase of 65.1 percent to 72 percent and setting a new quarterly record.
Moving forward, the Nio, Onvo, and Firefly brands will collectively drive substantial sales growth by catering to a broader range of customers across wider price segments.
Nio’s third-quarter net loss decreased 31.2 percent year-on-year as R&D expenses fell 28 percent, while SG&A expenses remained largely flat from last year.
